Planning Technical

Activities
Chapter 3

Report in ENS 192

BY: ESPINOSA, GILAYKA MAE &
JOHAYVER MAMACOL ALANGADI
 Learning Outline

A. The Nature of Planning

B. Planning Defined

C. Planning at Various Management Levels

D. The Planning Process

E. Types of Plans

F. Making Planning Effective

 The Nature of Planning

Plan- output of planning,

provides a methodical way of
achieving desired results. In the
implementation of activities, the
plan serves as a useful guide.
Planning Defined
Nickels and others
Nickels and others, refers to the management function that involves anticipating future trends
and determining the best strategies and tactics to achieve organizational objectives .

Aldag and Stearns

define planning as “ the selection and sequential ordering of tasks required to achieve an
organizational plan

Cole and Hamilton

- planning is “ deciding what will be done, who will do it, where, when and how it will be
done, and the standards to which it will be done.”
 Planning at Various Management Levels

1 2 3
Top management
level Middle Lower
management level management level
- strategic
planning -intermediate - operational
planning planning.
 Strategic Planning

- The output of strategic

- The term strategic planning refers to
planning is the strategic plan
the process of determining the major
which spells out “ the
goals of the organization and the
decision about long-range
policies and strategies for obtaining
goals and the course of
and using resources to achieve those
action to achieve these
goals. In this, the whole company is
goals.”
considered, specifically its objective
and current resources.
Intermediate planning
- Refers to “ the process of determining the contributions
that subunits can make with allocated resources. “ This
type of planning is undertaken by middle management.

Operational planning
- Refers to “ the process of determining how specific tasks
can best be accomplished on time with available
resources.
 The Planning Process

01 02
Setting organizational, Developing strategies or
divisional, or unit goal tactics

03
Determining resources
04
Setting standards
needed
1. Setting organizational, divisional, or
unit goal

To provide a sense of direction to Goals – defined as the “

his firm( if he is the chief precise statement of results
executive), to his division (if he
sought, quantified in time
heads a division), or to his unit ( if
and magnitude, where
he is a supervisor).
possible”.
 2. Developing strategies or tactics to reach goals.
- The ways to realize the goals are called strategies
and these will be the concern of top management.
The middle and lower management will adapt their
own tactics to implement their plans.

Strategy- may be defined Tactics- is a short-term

as “ a course of action action taken by
aimed at ensuring that management to adjust to
the organization will negative internal or
achieve its objectives.” external influences.
 3. Determining Resources Needed

To satisfy strategic requirements, a general statement of needed

resources will suffice. The specific requirements will be
determined by the different units of the company
 4. Setting Standards

Standard may be defined as “ a quantitative or qualitative

measuring device designed to help monitor the performances of
people, capital goods, or processes.”
 1. Functional
areas
Types of
Plans 2. Time horizon

3. Frequency of
use
 Functional Area Plans
Types:

1. Marketing Plan 2. Production Plan

- this is the written document or blueprint for
implementing and controlling an this is a written document that states the
organization’s marketing activities related to a quantity of output a company must produce
particular marketing strategy. in broad terms and by product family.

4. Human Resource Management

3. Financial Plan Plan
- it is a document that summarizes the current - it is a document that indicates the human
financial situation of the firm, analyzes resource needs of a company detailed in
financial needs, and recommends a direction terms of quantity and quality and based on
for financial activities. the requirements of the company’s strategic
plan.
 Plan With time Horizon

1. Short-range Plans 2. Long-range plans

plans intended plans covering a

to cover a period time span of
of less than one more than one
year. year
 Plans According to Frequency of Use

1. Standing Plans 2. Single-use Plans

- plans that are used - Developed to implement

again and again, and they courses of action that are
focus on managerial relatively unique and are
situations that recur unlikely to be repeated
repeatedly.
Standing may be further classified as :

1. Policies- they are broad guideline to aid managers at every

level in making decisions about recurring situations or
function.
2. Procedure- they are plans that describe the exact series of
actions to be taken in a given situation
3. Rules- they are statements that either require or forbid a
certain action
Single -Use Plans may be classified as :

1. Budgets – according to Weston and Brigham, is a plan which

sets forth the projected expenditure for a certain activity and
explains where the required funds will come from

2. Programs- designed to coordinate a large set of activities.

3. Projects- plan that is usually more limited in scope than a

program and is sometimes prepared to support a program.
 The contents of the Marketing plan.
William Cohen maintains that the following must be included in the marketing plans.
1. Executive Summary- presents an
overall view of the marketing project
and its potential.
5. Marketing Strategies
2. Table of contents
6. Marketing tactics
3. Situational analysis and Target
7. Schedule and Budget
Market
8. Financial Data and Control
4. Marketing objective and Goals
 The contents of production plan

1. The amount of 2. How many [Link] much materials

capacity the company employees are must be purchased
must have required
The contents of the financial plan:

1. An analysis of the firm’s current financial condition as

indicated by an analysis of the most recent statements
2. A sales forecast
3. The capital budget
4. The cash budget
5. A set of pro forma( or projected) financial statements
6. The external financing plan
Contents of the Human Resources Plan

1. Personnel requirements of the company

2. Plans for recruitment and selection

3. Training plan

4. Retirement plan
Part of the strategic plan

Company or corporate mission- refers to the strategic statement

that identifies why an organization exist, its philosophy of

management, and its purpose as distinguished from other similar

organizations in terms of products, services, and markets.

 Making Planning Effective

1. Recognize the 2. Use of aids to

planning barriers planning
The planning barriers according to Plunkett and Attner,

1. Managers inability to plan

2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of the future
6. Too much reliance on the planning department
7. Concentrating on only the controllable variables’
 Among the aids to planning that may be used are:

1. Gather as much information as possible

2. Develop multiple sources of information

3. Involve others in the planning process

 Figure 3.1 Types of Planning

MANAGEMENT LEVEL PLANNING HORIZON

Chief
Strategic planning
Top Management Executive Officer
(one to ten years)
President
Vice Presidents
General Manager
Division Heads

Functional Managers
Middle Management Intermediate planning
Product Line Managers
(six months to two years)
Department Heads

Unit Managers
First Line Operational planning
Supervisors (one week to one year)
Lower Management
 Figure 3.2 The Organization and Types of Planning Undertaken

PRESIDENT/GENERAL
MANAGER

Responsible for STRATEGIC

PLANNING

MARKETING PRODUCTION FINANCE MANAGER PERSONNEL

MANAGER MANAGER MANAGER
Responsible for
Responsible for INTERMEDIATE Responsible for
Responsible for INTERMEDIATE PLANNING INTERMEDIATE
INTERMEDIATE PLANNING
PLANNING
PLANNING

INDUSTRIAL QUALITY CONTROL

ENGINEERING FACTORY MANAGER
MANAGER
MANAGER
Responsible for Responsible for
Responsible for
OPERATIONAL PLANNING OPERATIONAL PLANNING
OPERATIONAL PLANNING
 Thanks!
Do you have any questions?

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